Toronto-Dominion Bank (TSX:TD) reported strong financial results for the fiscal fourth quarter, driven by growth in US retail, wealth management and capital markets.
For the quarter ended October 31, adjusted diluted earnings per share came in at C$2.18, above the consensus estimate of C$2.01.
Adjusted revenue was about C$16 billion, exceeding analyst forecasts of roughly C$15.49 billion.
Reported net income was C$3.28 billion, with diluted EPS of C$1.82, down from C$3.64 billion and C$1.97 per share a year earlier, while adjusted net income rose to C$3.91 billion from C$3.21 billion.
“TD had a strong fourth quarter, delivering robust fee and trading income in our markets-driven businesses as well as volume growth year-over-year in Canadian Personal and Commercial Banking,” TD Bank CEO Raymond Chun said in a statement.
Canadian Personal and Commercial Banking recorded net income of C$1.87 billion, up 2% year-over-year, driven by record loan and deposit volumes.
US Retail net income reached C$0.72 billion (US$0.52 billion), up 31% excluding last year’s contribution from TD’s investment in The Charles Schwab Corporation, while adjusted net income was C$1.01 billion (US$0.73 billion).
Wealth Management and Insurance net income rose C$0.70 billion, and Wholesale Banking posted adjusted net income of C$0.53 billion, up 77%, on record revenue of C$2.20 billion.
TD’s reported results included adjustments such as C$0.03 billion in amortization of acquired intangibles, C$0.04 billion in Cowen acquisition-related costs, C$0.49 billion for U.S. balance sheet restructuring, and other restructuring charges of C$0.19 billion.
The bank also announced a 2.9% dividend increase, implying a yield of 3.7%, and a return to semi-annual dividend reviews.
TD “produced solid results on the back of strong capital markets, with it also benefiting from lower than forecast provisions,” according to Jefferies analysts.
They wrote that they were “impressed with the sustained performance in its US retail segment, admittedly with some assistance from a low tax rate.”
They added that Capital Markets rebounded from the prior quarter, advisory fees were up 31%, and trading revenues were essentially flat, while Wealth Management revenues rose on assets under administration growth despite weaker insurance contributions.
Shares of TD added 1.4% post-earnings, trading at C$119.